United Spirits acquires craft gin maker NAO Spirits for US$15.01M 

INDIA – United Spirits, the Indian arm of global beverage giant Diageo, has announced the full acquisition of Indian craft gin maker NAO Spirits at an enterprise value of Rs 130 crore (US$15.01 million).  

The acquisition marks a strategic move by United Spirits to strengthen its presence in the premium and craft spirits segment in India. 

NAO Spirits was initially part of United Spirits’ investment portfolio under its Ventures arm. The acquisition will be executed in two phases.  

First, United Spirits will acquire 37,683 equity shares of NAO from existing shareholders for a total consideration of approximately Rs 53.80 crore (US$6.2M).  

Simultaneously, the company will subscribe to 31,820 new equity shares and 27,577 compulsorily convertible preference shares (CCPS) for around Rs 56 crore (US$6.5M). 

Following the completion of these transactions, United Spirits will hold approximately 97.07% of NAO’s paid-up share capital, effectively making NAO Spirits its subsidiary. 

Additionally, the board of United Spirits has approved a further investment of up to Rs 20 crore in NAO Spirits through additional subscriptions in one or more tranches. This capital will be allocated toward NAO’s working capital and operational requirements. 

Founded in 2017 by Anand Virmani, NAO Spirits has been instrumental in shaping the craft gin movement in India.  

Its flagship brands include ‘Greater Than’, the country’s first craft gin made with nine botanicals sourced globally, and ‘Hapusa’, a Himalayan dry gin that features wild-foraged Himalayan juniper and native botanicals.  

In 2023, the company expanded into the premium rum segment with the launch of PIPA, an aged spiced rum distilled from jaggery and matured in imported casks. 

Commenting on the acquisition, Praveen Someshwar, CEO of Diageo India, said, “The acquisition of NAO Spirits represents a pivotal step in exploring future growth opportunities in Indian craft spirits.” 

Anand Virmani, CEO of NAO Spirits, noted, “This investment will help us scale further with the support of Diageo India’s leadership, distribution network, and production capabilities.” 

The acquisition aligns with rising demand for premium alcoholic beverages in India, driven by increasing disposable income and shifting consumer preferences towards premium, artisanal, and experimental spirits.  

This trend has bolstered United Spirits’ financial performance, with the company reporting a 17% rise in standalone profit for the fourth quarter of the last fiscal year. 

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